American Resources Corporation (NASDAQ:AREC) announced record 2Q revenues of $16.2 million – the best quarterly financial performance in the firm’s history driven by steady expansion of its carbon and rare earths business.
The company saw 78% quarter-over-quarter revenue growth and far above the $393,200 figure it posted in the same year-ago quarter.
On an adjusted EBITDA basis, the firm posted an $11.5 million profit, as compared with a loss of $537,000 for the second quarter of 2021.
READ: American Resources starts development on two more carbon mines to feed McCoy Elkhorn complex
The bulk of 2Q revenue was driven by coal sales, which accounted for nearly $16 million, with royalty income and metals processing income making up the remaining portion.
During the quarter to end June 30, 2022, American Resources’ recently-rebranded ReElement Technologies division became the first domestic commercial producer of isolated and high-purity rare earth elements, which CEO Mark Jensen called a “huge accomplishment” for the integrated resources company.
“While we are confident in our team, process and technology, our results from our first commercial runs exceeded our expectations by achieving greater than 99.5% pure neodymium, dysprosium and praseodymium,” Jensen said in a statement.
“We fully believe our chromatography technology will reset the standard of how critical and rare earth elements are separated and purified around the world as well as providing the most efficient recycling solution for these critical raw materials.”
The CEO also had high praise for the performance of the carbon division, which is made up of operating mines located in the Central Appalachian basin of eastern Kentucky and southern West Virginia.
“Today, we continue to see the fruits of our investments and have our carbon platform in position to drive continued carbon production growth forward. We continue to see constrained supply throughout the industry and as a result, we find ourselves as one of the few sources of needed supply growth,” Jensen said.
Net loss for the quarter narrowed to $2.4 million from the $6.7 million it posted in 2Q 2021, or $0.04 versus $0.13 on a per-share basis.
Commercial production of high-purity battery elements expected in 2022
Looking ahead, American Resources said it was on track to commercially produce separated and high-purity battery elements from recycled lithium-based batteries in 4Q 2022.
“We believe these results showcase the early stages of a significant inflection point in our carbon business that our platform has been set up to deliver,” Jensen added. “Our team continues to put forth significant effort to grow production in this challenging supply chain environment and we're confident our mine plans and overall platform allows us to do so."
The group ended 2Q with nearly $4.9 million in cash.
Contact Angela at angela@proactiveinvestors.com
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